Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

Return on Assets (ROA)
since 2012

Microsoft Excel

Calculation

AbbVie Inc., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


The Return on Assets (ROA) for the analyzed period demonstrates considerable fluctuation. Initially, a high ROA is observed, followed by a period of decline, subsequent recovery, and then another decline, concluding with a period of relative stability.

Initial High Performance (2012-2013)
The ROA begins at 19.53% in 2012, indicating strong profitability relative to total assets. A decrease is then noted in 2013, with the ROA falling to 14.14%. This suggests a slight reduction in efficiency in generating earnings from the asset base, though performance remains robust.
Significant Decline and Recovery (2014-2016)
A substantial decline in ROA is evident in 2014, reaching 6.44%. This is followed by a partial recovery in 2015 and 2016, with ROA values of 9.70% and 9.01% respectively. The decline in 2014 coincides with a significant increase in total assets, while net earnings decreased substantially, suggesting that the expansion of the asset base did not immediately translate into proportional earnings growth. The subsequent recovery indicates some improvement in asset utilization.
Fluctuating Performance (2017-2019)
The period from 2017 to 2019 exhibits fluctuating ROA values. The ROA decreases to 7.50% in 2017, then increases to 9.58% in 2018, and subsequently declines to 8.84% in 2019. These fluctuations suggest inconsistent performance in converting assets into profits during this timeframe. Net earnings and total assets both increased during this period, but not consistently enough to drive a clear trend in ROA.
Sharp Decline and Subsequent Stabilization (2020-2025)
A marked decrease in ROA is observed in 2020, falling to 3.07%. This is followed by a substantial increase in 2021, reaching 8.53%, but then a decline to 3.61% in 2022. The ROA then stabilizes at approximately 3.15% - 3.17% for 2023, 2024, and 2025. The large increase in total assets in 2020, coupled with a decrease in net earnings, likely contributed to the initial decline in ROA. The subsequent stabilization suggests a leveling off of asset growth and earnings, resulting in a consistent, albeit lower, ROA.

Overall, the ROA demonstrates a complex pattern over the analyzed period. While initial values were strong, performance has become more variable, culminating in a period of relatively low and stable returns. The relationship between changes in net earnings and total assets appears to be a key driver of these fluctuations.


Comparison to Competitors

AbbVie Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

AbbVie Inc., ROA, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Health Care)

AbbVie Inc., ROA, long-term trends, comparison to industry (health care)

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).